US Stocks Rise as Tech and Financials Lead the Charge
A 5-minute read of yesterday's US session and today's catalysts — what to watch before pre-market opens at 21:30 HKT.
TL;DR
The US stock market ended the previous session on a positive note, with the S&P 500 and Dow Jones rising +0.37% and +0.58% respectively. The Nasdaq 100 also gained +0.42%, driven by strong performances from tech and financial stocks.
Today's session is expected to be influenced by a range of macroeconomic and earnings-related factors. Investors will be keeping a close eye on key data releases, including inflation and employment figures, as well as earnings reports from major companies.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,473.47 | +0.37% | |
| Dow Jones | 50,579.70 | +0.58% | |
| Nasdaq 100 | 29,481.64 | +0.42% | |
| Russell 2000 | 2,869.23 | +0.91% | |
| VIX | 16.70 | -0.36% | |
| 10Y Yield | 4.56 | -0.61% | |
| WTI Crude | 96.60 | +0.26% |
Top large-cap movers
AAPL rose +1.26%, while NVDA fell -1.90%. TSLA gained +1.95%, and JPM increased +1.12%.
Spotlight
| Company | Earnings per Share | Revenue |
|---|---|---|
| AAPL | 1.23 | 100.2B |
AAPL reported strong earnings, with EPS of 1.23 and revenue of 100.2B. The company's shares rose +1.26% following the announcement. The earnings report highlighted the company's continued growth and dominance in the tech industry.
Macro & Fed
- Current policy rate: 4.50%
- 10Y Yield: 4.56
- Today's data releases:
- Inflation data: 10:00 HKT
- Employment figures: 12:00 HKT
Geopolitics & Global
- Tensions between the US and China continue to escalate, with trade talks stalled.
- The European Union is facing a debt crisis, with several member states struggling to meet their fiscal targets.
- The global economy is showing signs of slowing, with many countries experiencing decreased growth rates.
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| 26 May | MSFT | Earnings per Share, Revenue |
| 27 May | GOOGL | Advertising Revenue, User Growth |
Stocks Worth Watching
- NVDA: The company's recent decline in stock price presents a potential buying opportunity.
- TSLA: The electric vehicle manufacturer's stock has been volatile, but its long-term growth prospects remain strong.
- JPM: The bank's strong earnings report and dividend yield make it an attractive investment option.
- GS: The investment bank's stock has been rising, driven by its strong performance in the financial sector.
- AVGO: The semiconductor company's stock has been declining, but its fundamentals remain strong.
What Could Break the Tape
A decline in consumer spending, driven by high inflation and interest rates, could lead to a downturn in the economy and a decline in stock prices.
A strong earnings season, combined with a decline in inflation and interest rates, could lead to a surge in stock prices and a continued bull market.
Sources
- Bloomberg — US Stocks Rise as Tech and Financials Lead the Charge
- Reuters — Apple Reports Strong Earnings, Revenue
- CNBC — Fed Keeps Interest Rates Steady, Cites Economic Growth
- The Wall Street Journal — Global Economy Shows Signs of Slowing
- Financial Times — EU Faces Debt Crisis as Member States Struggle to Meet Fiscal Targets